MECM 2303 v5.00.9106.1022 Unable to apply Windows 11 Operating system Image update KB5029263

Went to schedule updates to our WIM file for Windows 11, fails to apply update KB5029263.

Updating other OS images went fine (Windows 10, Server 2019).

An update has failed in the past (KB5026372) but I wanted to wait for next time to see if a newer update (Cumulative Update for Windows 11 Version 22H2) would fail too.

Tried to install a different update on the same image and that one went fine (.NET update).

OFFLINESERVICINGMGR.LOG:

Applying update with ID 18084401 on image at index 1. $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:50:57.569+360><thread=29228 (0x722C)>
SCF notification signalled. $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:52:35.557+360><thread=19404 (0x4BCC)>
InstallUpdate returned code 0x800f0991~ $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:55:08.077+360><thread=29228 (0x722C)>
STATMSG: ID=7911 SEV=E LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=XXXXXXXXXX.COM SITE=PS1 PID=3428 TID=29228 GMTDATE=Fri Sep 08 20:55:08.088 2023 ISTR0="18084401" ISTR1="PS100187" ISTR2="1" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 LE=0X991 $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:55:08.077+360><thread=29228 (0x722C)>
Failed to install update with ID 18084401 on the image. ErrorCode = 2449 $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:55:08.077+360><thread=29228 (0x722C)>
Applicability State = APPLICABILITY_CHECK_NOT_SUPPORTED, Update Binary = G:\ConfigMgr_OfflineImageServicing\72ade1ad-4854-459c-bfaf-d26517f30757\Windows11.0-KB5029263-x64.psf. $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:55:08.077+360><thread=29228 (0x722C)>
STATMSG: ID=7917 SEV=I LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=XXXXXXXXX.COM SITE=PS1 PID=3428 TID=29228 GMTDATE=Fri Sep 08 20:55:08.090 2023 ISTR0="G:\ConfigMgr_OfflineImageServicing\72ade1ad-4854-459c-bfaf-d26517f30757\Windows11.0-KB5029263-x64.psf" ISTR1="18084401" ISTR2="" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 LE=0X0 $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:55:08.077+360><thread=29228 (0x722C)>
Not applying this update binary, it is not supported. $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:55:08.077+360><thread=29228 (0x722C)>
UnMounting Image (Commit Changes = 0) ... $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:55:08.077+360><thread=29228 (0x722C)>
Successfully run 'dism /cleanup-wim' $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.312+360><thread=29228 (0x722C)>
Successfully run 'dism /cleanup-mountpoints' $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.421+360><thread=29228 (0x722C)>
Failed processing image at index 1 as one or more updates failed to install. $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.421+360><thread=29228 (0x722C)>
STATMSG: ID=7907 SEV=I LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=XXXXXXXXXX.COM SITE=PS1 PID=3428 TID=29228 GMTDATE=Fri Sep 08 20:56:05.426 2023 ISTR0="PS100187" ISTR1="" ISTR2="" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 LE=0X0 $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.421+360><thread=29228 (0x722C)>
Completed processing image package PS100187. Status = Failed $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.436+360><thread=29228 (0x722C)>
Not copying back the image to source location $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.436+360><thread=29228 (0x722C)>
Successfully deleted entry from database for schedule ID=16777253 Name="" assigned to ImageID=PS100187 $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.436+360><thread=29228 (0x722C)>
Updated history for image package PS100187 in the database $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.436+360><thread=29228 (0x722C)>
Schedule processing failed $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.436+360><thread=29228 (0x722C)>
Processing completed for Schedule with ID 16777262 $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.452+360><thread=29228 (0x722C)>
STATMSG: ID=7910 SEV=E LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=XXXXXXXXXX.COM SITE=PS1 PID=3428 TID=29228 GMTDATE=Fri Sep 08 20:56:05.453 2023 ISTR0="16777262" ISTR1="" ISTR2="" ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 LE=0X0 $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.452+360><thread=29228 (0x722C)>
Schedule processing thread stopped~ $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.499+360><thread=29228 (0x722C)>
Closing the thread handle. $$<SMS_OFFLINE_SERVICING_MANAGER><09-08-2023 14:56:05.499+360><thread=19404 (0x4BCC)>